Earthquake rocks New Zealand lower North Island

A sizeable earthquake has struck the lower half of New Zealand's North Island, knocking power out for a while in the town of Eketahuna, as well as causing property damage between Wellington and Manawatu.

The US Geological Survey said the 6.2 magnitude quake struck about 3.52pm (1.52pm AEDT), 34 kilometres south-south-east of Palmerston North at a depth of 28 kilometres.

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"There's been limited damage in Palmerston North and lower Hawke's Bay with the odd chimney and things like that," he told AAP.

"Other than giving us a really good rattle, there's no damage south of Eketahuna that I'm aware of."

Tranz Metro has suspended all train services in Wellington.

Heather Gowans and her partner Adrian Tutauha live in Solway, Masterton, about 40 kilometres from the quake centre.

"It was really shaking and rolling - it went on for about 30 seconds. Adrian ran to grab the flat screen TV just in time. It just kept going and going and was swaying really bad. Everything was swaying and the place was creaking and groaning - but luckily nothing is broken."

William Lane, 57, of Palmerston North, said: "We were just standing, talking to my partner in the hall, and we got a good fright actually.

"I've been around for quite awhile and that'd be by far the biggest one I've felt."

Mr Lane said his dog was running in circles, his pictures were knocked askew and he felt his house buckle during the quake. He and his partner were almost knocked off their feet, he said.

Hundreds of shoppers in Lower Hutt's Queensgate Mall were evacuated following the quake, which left people screaming and ducking for cover as items fell from shelves.

Gas Eketahuna Service Station owner Lisa Seator said power was knocked out for about 15 minutes in the town, and her business had suffered damage.

"The microwave's ended up in the middle of the floor and we had fridges tipped over here," she told NZ Newswire.

"We've also had reports of a fire at the substation, which might have been what took the power out."

Ms Seator said the forecourt was crowded with people coming to get some supplies.

"It was very violent and went on for quite a while," she said.

"It gave us a good shake, but I haven't heard of anybody injured as yet."

At least seven aftershocks, one as high as a magnitude 4.5, have been recorded since the main quake.

Sergeant Pete Theobald of police communications said most calls reporting damage were from around the Eketahuna area, and they were still assessing how widespread it was.

Dollar drops

The New Zealand dollar dropped after the quake, falling as much as 0.3 per cent to 82.32 US cents, the least since January 10. It traded at 82.39 US cents at 4.10pm local time.

New Zealand sits on the Pacific Ring of Fire, a belt of volcanic and quake activity that circles the Pacific Ocean.

Wellington's city centre was temporarily closed after a magnitude 6.5 earthquake struck on July 21 last year, blowing out windows, throwing goods from store shelves and sending people running from buildings.

A magnitude 6.3 quake in February 2011 in the South Island city of Christchurch killed 185 people, the nation's deadliest in eight decades.